VHI Healthcare says it remains over €50m short of financial sustainability, despite reporting a surplus of €7.4m for 2011.
The insurer has expressed concern at the rising cost of private beds in public hospitals.
VHI Healthcare says its hospital insurance business continues to be loss-making but that it is creating the financial environment to achieve long-term sustainability.
It's latest annual report shows it made a surplus of €7.4m last year, compared with a loss of over €3m the previous year.
VHI has reserves of €295m, but it will need an extra cash injection of up to €250m to satisfy the Central Bank regulatory status being demanded by the European Commission.
The company has expressed concern at the rising cost of private beds in public hospitals which have increased by 41% since 2009.
It says the rates charged are set by the Department of Health and are not subject to negotiation. It has asked the Minister for Health to look at the issue.
Declan Moran, VHI chief executive, said the company's business had been stabilised, despite a fall in members, people increasingly downgrading their cover and the increasing age of its customers.
It has engaged consultancy firm Milliman to examine the potential for further cost-saving measures.
